Parent company of Cape casino reports improved earnings

Isle Casino Cape Girardeau's parent company on Tuesday reported healthy earnings for the latest fiscal year and detailed plans for future capital investments.

The Cape Girardeau casino increased annual net revenue by nearly $5 million, totaling $59.6 million for the year ended April 27, according to the company's financial report. The casino reached $54.9 million in net revenue during the 2014 fiscal year and $32.8 million in 2013. The 2013 amount is lower because the casino opened in October 2012, the halfway point of the fiscal year.

Virginia McDowell, president and CEO of Isle of Capri, said during a conference call the company has benefited from ongoing cost-saving initiatives and good customer response to improved physical plans for Isle properties, focused marketing programs and targeted food and beverage offerings.

For the past couple of years, the company, which operates 15 casino properties in seven states, including four in Missouri, has been working to control costs and adjust operational models.

"One year ago when we announced our fiscal 2014 fourth-quarter year-end results, I noted that we were engaged in a disciplined balancing act, simultaneously identifying opportunities to operate smarter and more profitably, while keeping our focus on constantly improving the customer experience," McDowell said. "There was a change in culture across our enterprise. The Isle team was laser-focused on finding operational efficiencies that provided us with the resources to invest prudently in our facilities and in the entertainment experience we provided. One year later, the results of our efforts speak volumes."

The company's balance sheet, McDowell said, is in the best shape the company has seen since the economic downturn, and its debt balance is below $1 billion for the first time since 2000.

Cape Girardeau was one of the properties where the company focused, according to releases which accompanied previous financial statements -- in 2014 the company was working to align costs with business volumes and "develop and refine its marketing programs" for the casino.

For the most recent quarter, revenue increased at the Missouri casinos by more than 5 percent, to to $65.6 million.

City revenue

More gaming-generated revenue for the city of Cape Girardeau is seen with the improvement in earnings, along with a higher number of visitors spending time at the Cape Girardeau casino.

The amount the city will receive this fiscal year, which will top $3 million, comes from half of admission fees and 10 percent of state gaming taxes.

In fiscal year 2013, the city collected $2,574,549, and in fiscal year 2014 collected $2,969,769. So far this fiscal year, with totals reported through the end of May, the city has collected $2,990,247, according to the most recent gaming revenue report from the city's finance department. The city's fiscal year ends June 30, and the average monthly amount of gaming revenue going to the city during the past six months is just over $250,000.

Admissions at Isle Casino Cape Girardeau, defined as two-hour increments spent at the casino by visitors, totaled 1,618,802 at the end of the fiscal year, up from 1,492,391 in fiscal year 2014.

The gain in revenue in the Cape Girardeau market could help lead the company toward initiating a second phase of property development that would include building a hotel near the existing casino, according to the company's previously outlined plans. Company executives have also said pursuit of a hotel development would depend on other area hotel occupancy rates.

On Tuesday, executives said the company continues to speak with developers about mutually beneficial projects.

For now, the company is focused on capital improvements elsewhere -- one of its Iowa properties will see a riverboat casino replaced with a new land-based facility this year to the tune of $45 million. Eric Hausler, Isle's chief financial officer, said the company also plans to spend $40 million on gaming equipment and maintenance for its facilities and $15 million on other projects and renovations.

eragan@semissourian.com

388-3632

Pertinent address:

777 N. Main St., Cape Girardeau, MO